• Expansion and diversification of trial portfolio and customer base
• Channel partnerships gaining momentum
• Technology advancement with AI-powered solutions

Cogstate Ltd (ASX:CGS) has reported strong financial results for the half-year ended 31 December 2025 (1H26). Revenue was up 12% to $26.9m, driven by record sales opportunities from an expanded and more diversified customer base across multiple indications. The company's Central Nervous System (CNS) endpoint innovations business continues to gain market share in an expanding market, with 133 ongoing trials at 31 Dec 2025 - up 34% year-on-year and 42 new trial starts in 1H26. Cogstate's channel partnerships are also gaining momentum, with 70% of sales opportunities and 62% of executed sales contracts in the Dec-25 quarter coming through channel partners. The company has also made progress on technology advancement, with ongoing development and customer uptake of its proprietary AI-powered solutions. While cost of sales increased due to investment in resources to support the larger and more diversified portfolio, Cogstate is forecasting a recovery in gross margins to 56-59% in 2H26. The company ended the period with a strong cash position of $34.1m and no debt, enabling continued investment in growth initiatives and shareholder returns. Cogstate is forecasting further revenue and profit growth in 2H26, underpinned by a record $21.7m in contracted revenue.

Cogstate is forecasting revenue growth in FY26 to exceed FY25 levels, with a return to 56-59% gross margins in 2H26. The company's sales pipeline remains at record levels, providing confidence in the outlook.

Cogstate is well-positioned for continued growth, driven by expansion across multiple indications, maturing channel partnerships, and favorable competitive dynamics. The company is targeting strategic growth initiatives, investment in innovation, and sustainable dividends as part of its capital allocation priorities.